Savvy Internet users will be fully aware of the term ‘domain flipping’. Domain flipping refers to the buying and selling of domains for a profit. Domain squatting is a perfectly legal practice. Entrepreneurs treat domains exactly as they would real estate property that’s bought and sold in the offline world.
Flipping domains isn’t risk-free but, there are some best practice guidelines to stick to:
• Stick to a niche you anticipate will be profitable in the future if not now
Domain flipping is all about seeking the most profitable niches available. Finding a profitable niche will help you with fishing and parking domain names. Having a niche also makes it easy to seek out prospective buyers interested in the domain names you are offering.
• Do your keyword research
To expect a good return on your investment, focus on hot keywords with high traffic. A domain name that buyers would be interested in including a keyword with traffic over 10,000 a month is a pretty fail-safe money spinner.
• Don’t overlook local domain names
The market for local social search engine optimization has really taken off. Search domain registries for local domain names for all business types from salons to pizza parlours. Localized domain names with target keywords will thrive on Google making them higher in value.
• Buy a new domain wherever possible
Even though the majority of generic domain names are usually taken, there will be some high value, unregistered .com domains. Don’t waste time registering such a domain name. Be sure to use an accredited domain registry such as Namecheap, who will enable you to sell your domain to an interested party easily.
• Buy domains with a decent page rank
Buying an existing domain name can be profitable too. Testing a domain’s rank and backlinks is a smart move to test its value. A domain with little to offer by way of keyword relevancy might have been previously owned by a business with lots of backlinks and a decent page rank. A domain with a ranking of five combined with a good number of backlinks could be worth a lot of money.
• Consider alternative TLDs
.Com is indeed a sought-after domain extension, it’s also one of the most expensive and new opportunities are thin on the ground in many places. There are many alternative top-level domains available with the potential to of being sold at high-profit rates.
• Know your budget and stick to it
Just like any other business, knowing and sticking to it is very important when it comes to domain flipping. Investing small amounts of money when you get started to make bigger investments once you have more experience in the field.